Process Manufacturing, Recreational Vehicle and Laboratory - MSM Manufacturing Training Package April 2019
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Process Manufacturing,
Recreational Vehicle and Laboratory
Industry Reference Committee
Skills Forecast and Proposed
Schedule of Work 2019–2023
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MSM Manufacturing Training Package
April 2019Administrative Information
Name of Industry Reference Committee (IRC):
Process Manufacturing, Recreational Vehicle and Laboratory (PMRVL)
Name of Skills Service Organisation (SSO):
Innovation and Business Skills Australia (IBSA Manufacturing)
About the Industry Reference Committee
The Process Manufacturing, Recreational Vehicle and Laboratory Industry Reference Committee comprises eight
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members and was constituted in April 2017.
The 2019 Industry Skills Forecast and Proposed Schedule of Work was reviewed and approved by the membership below:
Mr Keith Monaghan (Chair) Mr Nigel Haywood
Mr Ian Curry Mr Han Michel
Mr Stuart Lamont
Ms Leah Simmons
AF Mr Grahame Aston
Ms Julie Warren
About the Skills Forecast
The Industry Reference Committee (IRC) Skills Forecast and Proposed Schedule of Work identifies priorities for
training package development work to meet the needs of industry. This document is based on research, analysis and
consultations with IRC members and industry stakeholders and provides evidence of current and emerging industry
skills needs.
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MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–2023Industry Reference Committee Signoff
This 2019 return of the Process Manufacturing, Recreational Vehicle and Laboratory IRC Skills Forecast and Proposed
Schedule of Work for the MSM Manufacturing Training Package was agreed as the result of a properly constituted IRC
decision and was approved by:
IRC Chair: Keith Monaghan
Date: April 2019
IBSA Manufacturing This IRC Skills Forecast and Proposed Schedule of Work
Level 11, 176 Wellington Parade has been prepared on behalf of the PMRVL Industry
East Melbourne, Victoria, 3002 Reference Committee for submission to the Australian
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Industry and Skills Committee (AISC).
Call (03) 9815 7099
This document has been produced with the assistance
www.ibsa.org.au
of funding provided by the Commonwealth Government
manufacturing@ibsa.org.au
through the Department of Education and Training.
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MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–2023Contents
Administrative Information I
About the Industry Reference Committee I
About the Skills Forecast I
Industry Reference Committee Signoff II
Executive Summary 01
Sector Overview 02
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What are the Process Manufacturing and Recreational Vehicle Industries? 02
Industry Snapshot 03
Training Snapshot 10
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Challenges and Opportunities
Employment and Skills Outlook
Employment Outlook
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Skills Outlook 31
Key Drivers for Change and Proposed Responses 34
Training Product Review 35
Current Activities 35
Upcoming Activities 38
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Consultation Undertaken 40
Issues and Sensitivities Raised 40
Proposed Schedule of Work 2019–2020 to 2022–2023 42
DAppendix A: Occupation Classifications 45
Appendix B: Industry Classifications 46
Appendix C: Census Snapshot 47
MSM Manufacturing Training Package 47
PMC Manufactured Mineral Products Training Package 52
Appendix D: Enrolment Snapshot 56
MSM Manufacturing Training Package 56
Appendix E: Process Manufacturing RTO Survey 62
Survey Findings Report 62
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Findings of Initial Survey Contacts 63
Findings of In-Depth Interviews 64
Learner Types & Industries 65
Industry, Employer and Learner Needs 65
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What is Working Well?
What Could be Improved?
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68
What is Missing? 71
Effectiveness in Meeting Employer and Learner Needs 72
Appendix F: Consultation List 73
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D01
Executive Summary
Workforce challenges and opportunities facing the process manufacturing and recreational vehicle industries in the
areas of legislative changes, changing technology, sustainability demands and skill shortages are resulting in new and
emerging skill development priorities for these industries, including:
• increased product safety standards to be met in the manufacture of recreational vehicles
• new or more advanced skills, and new combinations of skills needed to meet changes in technology and advanced
manufacturing processes
• potential changes to job roles in trade measurement inspection and verification
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• emerging job roles related to the use of high-pressure water jetting and vacuuming.
The Proposed Schedule of Work 2019–2020 to 2022–2023 was developed by the IRC, with support from IBSA
Manufacturing, based on identified industry trends. The Schedule lists the priorities over the next four years, the
rationale and the proposed timeframes for these activities. The priority identified by the IRC as important and proposed
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for completion in 2019–2020 is the review of recreational vehicle qualifications to reflect requirements of the upcoming
Road Vehicle Standards Act (RVSA), to ensure currency in relation to any new trends and changes in practice in the
sector and to consider whether there is a need for inclusion of business skills within recreational vehicle qualifications.
Further details about this priority can be found in the Proposed Schedule of Work. A Case for Change for this priority
will be submitted in 2019–2020.
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MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202302
Sector Overview
What are the Process Manufacturing and
Recreational Vehicle Industries?
The process manufacturing sector is involved in the production of goods that are manufactured in bulk quantities from
raw materials, as opposed to products manufactured from parts. Process-manufactured goods include food, beverages,
refined oil, gasoline, pharmaceuticals, medical technologies, chemicals and plastics. The process manufacturing
qualifications in the MSM Manufacturing Training Package are deliberately generic and have been designed to support
the work of people in production support roles, rather than in the manufacture of specific goods.
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The MSM Manufacturing Training Package includes qualifications related to a range of manufacturing sectors, including
the following:
• Surface preparation and coating – specialises in preparing metal surfaces and applying a coating that increases its
•
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durability and protection against rust
Manufactured mineral products – uses minerals extracted from the earth to produce a range of products used in
the building and construction, civil construction, heavy industry, automotive and landscaping industries, and
• Fenestration – the manufacture of windows and doors.
The recreational vehicle sector includes the manufacture of motor homes, caravans, camper trailers, slide-on campers
and fifth wheelers. The relevant qualifications in the MSM Manufacturing Training Package covers the three aspects of
the recreational vehicle sector:
• recreational vehicle manufacture
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• recreational vehicle service and repair
• recreational vehicle and accessories retailing.
A number of skill sets are also included in the MSM Manufacturing Training Package, which cover:
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• trade measurement
• high pressure water jetting, drain cleaning and vacuuming
• high risk work boiler operations
• supervision
• confined space work.
MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202303
Industry Snapshot
Due to the broad number of sectors and job roles covered by the MSM Manufacturing Training Package, there are
inherent difficulties in identifying relevant industry and occupational data.
Despite the following limitations, the data can be useful in highlighting recent trends and, when supplemented with
qualitative advice from industry, can help to develop a useful picture of current and prospective industry conditions.
• Selected data from the Australian Bureau of Statistics (ABS) included in this report is based on two hierarchical
classification systems – the Australian and New Zealand Standard Industrial Classification1 (ANZSIC) and the
Australian and New Zealand Standard Classification of Occupations2 (ANZSCO). A list of ANZSIC and ANZSCO
codes that have been identified by key industry stakeholders as relevant to the MSM Training Package are
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provided at Appendix A and Appendix B.
• Census data, the most recent being 2016, can generally be broken down to the four-digit levels of these
classifications. However, annual data is only available at the three-digit levels. Some of the industries or
occupations that are included at the available level of aggregation may not be specifically relevant to this Training
Package. To support the analysis of annual data included in the report, Appendix C provides a more detailed
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breakdown of occupational data based on the 2016 Census.
Furthermore, the ANZSIC and ANZSCO classification systems were introduced in 2006, with minor revisions
incorporated into the ANZSCO structure in 2009 and 2013. The Process Manufacturing, Recreational Vehicle
and Laboratory IRC has noted that some ANZSIC and ANZSCO codes are now outdated and do not represent
some emerging industries or occupations. In addition, the classification systems may not be sensitive to
localised specialisations.
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1 ABS Cat.no.1292.0.55.002 Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 – Codes and Titles.
2 ABS Cat.no.1220.0 ANZSCO – Australian and New Zealand Standard Classification of Occupations, 2013, Version 1.2.
MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202304
Process Manufacturing
Process manufacturing is the production of goods that are manufactured in bulk quantities from raw materials, as
opposed to goods manufactured in from parts. Process-manufactured goods include food, beverages, refined oil,
gasoline, pharmaceuticals, chemicals and plastics.
The process manufacturing qualifications in the MSM Manufacturing Training Package are designed for workers in
process manufacturing production support roles, rather than specific technical roles. They also apply to employees who
operate across more than one area within the process manufacturing sector or those with responsibility for ‘specialised
processes’ only when required. The production management qualification contained in the MSM Manufacturing
Training Package is focused on the planning, directing and coordinating of production in process manufacturing or other
manufacturing environments.
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Due to their generic nature and ability to be customised through a wide range of electives, the process manufacturing
qualifications are in use across diverse industry sectors. A recent survey of Registered Training Organisations (RTOs)
with these qualifications on scope found that they are being delivered to employees in mining and resources, chemical
manufacturing, food and beverage production, commercial laundries, recycling facilities, water and sewage treatment,
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engineering works, furniture assembly, construction equipment manufacturing, the canvas/textile industry, steel
product manufacturing, packaging, plastics, concrete supplies and more.
Business Landscape
Due to the widespread use of the process manufacturing qualifications, it is difficult to quantify the number of
businesses that may potentially use them. However, a number of observations can be made about the two main
manufacturing sub-sectors to which they relate.
The Performance of Manufacturing Index (PMI) shows that petroleum, coal, chemicals and rubber products (a large
sub-sector that includes fertilisers, pharmaceuticals, toiletries and health supplements, as well as construction-related
products such as paints, adhesives and surface treatments) has been growing since 2015 but has experienced a slowing
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of growth during 2018. This has been attributed to a low Australian dollar, increasing oil prices and high gas costs.3
The PMI also shows that non-metallic mineral products, which are mainly building-related (e.g. glass, cement and tiles),
reached a record high in September 2018 and have also been in a state of expansion since 2015. The growth is attributed
to a strong pipeline of residential and non-residential construction work.4
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3 AiGroup, 2018, Performance of Manufacturing Index Report, September 2018.
4 Ibid.
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IRC Skills Forecast and Proposed Schedule of Work 2019–202305
ABS data indicates that across the petroleum, coal, chemicals and rubber products and non-metallic mineral products
sub-sectors, there were 9,143 businesses operating in mid-2017. This represents a growth of around 1.6% since 2015.
Most of these businesses are small or non-employing, with only 9% medium and 1% large.5
Number of businesses Growth since 2015
1.6% growth:
90% small businesses
9,143
9% medium businesses
1% large businesses
Source: ABS 8165.0 Counts of Australian Businesses, including Entries and Exits, Jun 2013 to Jun 2017.
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Key Stakeholders
Peak bodies in this sector are those related to manufacturing, including AiGroup and Manufacturing Australia, as well as
those related to the individual sub-sectors.
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Unions representing this sector include the Australian Workers Union (AWU), Australian Manufacturing Workers Union
(AMWU) and the National Union of Workers (NUW).
Recreational Vehicles
The recreational vehicle sector manufactures, repairs, services and retails recreational vehicles and accessories,
including motor homes, caravans, camper trailers, slide-on campers and fifth wheelers.
Unlike the broader motor vehicle and motor vehicle part manufacturing sector to which the recreational vehicle sector
belongs, recreational vehicle manufacturing in Australia continues to see strong growth. Over 22,000 units were
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constructed in 2017; a 2.5% increase on 2016 and representing the second highest level of production in 37 years. The
number of units manufactured has consistently exceeded 20,000 units since 2010, despite a huge increase in imported
product into the market, which now accounts for approximately 30% of the total product being supplied to market.6
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5 Source: ABS 8165.0 Counts of Australian Businesses, including Entries and Exits, Jun 2013 to Jun 2017.
6 Data supplied by the Caravan Industry Association of Australia.
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Recreational vehicle registrations also grew by over 5% from 2017, which equates to a total of nearly 680,000 caravan
and campervans on Australia’s roads. 2018 saw caravan registrations break through 600,000 for the first time, with
campervans continuing their strong growth from previous years to total 66,592.7
Growth Growth since 2016 Growth since 2017
2.5% growth in units constructed 5% growth in recreational vehicle registrations
Source: ABS 8165.0 Counts of Australian Businesses, including Entries and Exits, Jun 2013 to Jun 2017.
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Business Landscape
Within currently available data, it is not possible to distinguish between recreational vehicles and other automotive
vehicles in terms of businesses involved in sales, manufacture, service and repair.
According to industry advice, the sector predominantly comprises micro businesses. However, the manufacturing area
is dominated by:
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Jayco Corporation Pty Ltd – a large company, with more than 1,000 employees across Australia, headquartered in
Dandenong South, Victoria.
• Fleetwood Corporation Limited – a large manufacturer of caravans, with more than 200 employees,
headquartered in East Perth, Western Australia.
• Avida – a large manufacturer of Recreational Vehicles, with more than 200 employees, headquartered in Emu
Plains, New South Wales.
• New Age Caravans – a medium company, with more than 130 employees, based in Epping, Victoria.
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Key Stakeholders
The key industry associations related to recreational vehicle manufacture, service, repair and sales are the:
• Caravan Industry Association of Australia
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• Caravan and Camping Industries Association of South Australia Incorporated
• Caravan, Camping and Touring Industry and Manufactured Housing Industry Association of NSW Limited
• Caravan Industry Association Western Australia Incorporated
• Caravan Trade and Industries Association of Queensland
• Caravan Trade and Industries Association of Victoria.
7 Data supplied by the Caravan Industry Association of Australia.
MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202307
Surface Preparation and Coating
The surface preparation and coating industry specialises in treating the surface of a substance or material to increase
its adhesion to a coating, and then applying a coating to the prepared surface. The industry treats a range of metal
products (mainly dealing with heavy industry, marine infrastructure and built infrastructure) to increase durability,
provide protection against rust and achieve a decorative finish.
Business Landscape
According to IBISWorld,8 weak demand from domestic metal manufacturing markets has limited growth in revenue in
the Australian industry; contrary to the global trend of increasing growth due to infrastructure investment in Asia and
the Middle East. However, it is predicted that industry performance will improve in the next 5 years in line with improved
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demand from infrastructure, mining and building markets, and increased investment in defence programs.
Number of businesses Decline since 2015
4.6% decline:
1,463
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6% medium businesses
0% large businesses
Source: ABS 8165.0 Counts of Australian Businesses, including Entries and Exits, Jun 2013 to Jun 2017.
According to ABS data,9 there were 1,463 businesses operating in this sector in 2017, which represents a decline of
4.6% since 2015. The large majority of these businesses are small or non-employing, with only 6% medium and no large
businesses in this industry segment.10
This is due to the fact that most businesses in this sector are located close to their clients to reduce transport costs,
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and therefore tend to specialise in the processes and services needed by their clients, rather than offering a diverse
range of services from a more centralised location.11
Key Stakeholders
The two largest businesses in this sector, Valmont Group Holdings Pty Limited and PPG Industries Australia Pty Ltd,
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account for 5.4% and 11.2% of the market share respectively.
Peak bodies in this sector include the Galvanizers Association of Australia (GAA) and the Australasian Institute of
Surface Finishing (AISF).
8 IBISWorld, 2017, Industry Report C2293 – Metal Coating and Finishing in Australia, Dec 2017.
9 Source: ABS 8165.0 Counts of Australian Businesses, including Entries and Exits, Jun 2013 to Jun 2017.
10 Ibid.
11 IBISWorld, 2017, Industry Report C2293 – Metal Coating and Finishing in Australia, Dec 2017.
MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202308
Manufactured Mineral Products
The manufactured mineral products industry sector uses minerals extracted from the earth through excavating,
quarrying, dredging or tunnelling. These minerals are used to produce a range of materials and products that are
typically used by other industries rather than directly consumed by the public.
Industries using manufactured mineral products include building and construction (cement, concrete and fibre cement
products), civil construction (cement, concrete products, asphalt) and landscaping (concrete blocks and pavers).
Although the industry sector has a broad remit, the focus of the new Certificate III in Manufactured Mineral Products is
specifically on cement, concrete, precast concrete, quarry and asphalt products.
Business Landscape
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According to ABS data, there were 2,088 businesses operating in the broad manufactured mineral products sector in
2017. This represents a slight increase of about 2% on the number of businesses in operation in 2015. Like the other
manufacturing sectors covered by the MSM Manufacturing Training Package, the manufactured mineral products
sector is comprised predominantly of small and micro business, with only 9% medium sized and 1% large businesses
operating in 2017.12
Number of businesses
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2.0% growth:
90% small businesses
2,088
9% medium businesses
1% large businesses
Source: ABS 8165.0 Counts of Australian Businesses, including Entries and Exits, Jun 2013 to Jun 2017.
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According to IBIS World reports, fluctuations in residential building markets have negatively impacted on the demand
for manufactured mineral products. Substitution of cheaper materials and imported products is also contributing to
constrained growth in the cement sector.
Significant declines in major infrastructure projects in the mining and energy sectors have negatively impacted on
demand for ready-mix concrete and concrete products. However, the market is expected to recover over the next five
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years as investment in building, roads and other infrastructure projects increases.
12 Source: ABS 8165.0 Counts of Australian Businesses, including Entries and Exits, Jun 2013 to Jun 2017.
MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202309
Key Stakeholders
The key industry associations related to the manufactured mineral products industry sector are:
• Cement, Concrete and Aggregates Australia
• Cement Industry Federation
• National Precast Concrete Association.
The Housing Industry Association and Master Builders Australia also represent some businesses involved in the sector.
Fenestration
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Fenestration relates to the construction of openings in buildings, including windows, doors, louvres, vents, wall panels,
skylights, storefronts, curtain walls, and slope glazed systems. The focus on the newly developed qualification in
fenestration is on the skills needed for the manufacture of windows and doors.
Business Landscape
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Demand for window and door manufacturing is heavily influenced by the residential building market, which, according
to IBISWorld reports, has been in a state of flux over recent years, but is expected to experience a return to growth over
the next five years.
Development of commercial buildings is, however, supporting demand for these products. Aluminium windows and
doors in particular are seen as a sustainable material for non-residential construction, and demand for these is expected
to increase as developers seek to gain higher sustainability ratings for buildings to meet customer demands.
In recent years, Australia’s glazing and window manufacturing industries have invested heavily in new plant, equipment,
projects and staff training in response to government and market demands for more sustainable buildings. The industry
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has the capacity to not only compete with imports, but to locally produce world-class high-technology energy efficient
window products.
Key Stakeholders
The largest companies operating in this sector are JELD-WEN Australia, which manufactures doors and windows under
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a number of brands, G James Glass & Aluminium, Viridian, Chevron Glass Group, Flat Glass Industries and Walshs Glass.
The Australian Window Association is the peak body for the industry sector.
MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202310
Training Snapshot
In 2017, a learner enrolled in a qualification from the MSM Manufacturing Training Package
was most likely to be:
ENROLLED IN CERTIFICATE III IN
STUDYING IN QUEENSLAND
PROCESS MANUFACTURING
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IN THE 19 YEARS OR YOUNGER AGE NOT IN AN APPRENTICESHIP OR
BRACKET TRAINEESHIP
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ENROLLED WITH A PRIVATE RTO. MALE
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Source: NCVER VOCSTATS (Program enrolments 2017 by various breakdowns).
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MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202311
Of the graduates of MSM Manufacturing Training Package qualifications in 2017, 86.7% were employed after training,
with the majority of these (75.6%) employed full-time. As illustrated in Figure 1 below, this level of post-qualification
employment is higher than that of Vocational Education and Training (VET) qualifications overall.
Figure 1 – VET graduates – employment outcomes after training
All VET graduates 47% 31% 22%
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Manufacturing Training Package 76% 11% 13%
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Employed full-time Employed part-time Not employed
Source: NCVER VET student outcomes 2017, Data visualisation – VET graduate outcomes, all VET graduates.
Only 10% of enrolments in MSM Manufacturing Training Package qualifications were as part of a traineeship and these
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were predominantly in the Certificate III in Process Manufacturing.13
This is despite several qualifications being funded as traineeships across various states; namely:
• Certificate II in Process Manufacturing (funded in WA and TAS)
• Certificate II in Recreational Vehicle Manufacturing (funded in WA)
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• Certificate III in Process Manufacturing (funded in WA, SA, TAS and ACT)
• Certificate III in Surface Preparation and Coating Application (funded in VIC, WA and TAS)
• Certificate III in Recreational Vehicle Service and Repair (funded in VIC, QLD, TAS and NT)
• Certificate III in Recreational Vehicle Manufacturing (funded in VIC, QLD, WA and TAS)
• Certificate IV in Process Manufacturing (funded in VIC).14
13 Source: NCVER VOCSTATS , extracted on 13/08/2018.
14 This data is sourced from state and territory training authorities and is provided for information only. It must be confirmed with these authorities.
MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202312
There were 2,147 VET delivered to secondary students (formerly VET in Schools) enrolments in MSM Manufacturing
Training Package qualifications in 2017, with 85% of these enrolled in Queensland. In 2017, VET delivered to secondary
students enrolments accounted for 24% of all enrolments in the MSM Training Package.
Most of these enrolments were in the two qualifications designed for delivery in schools:
• Certificate II in Manufacturing Technology
• Certificate I in Manufacturing (Pathways).
For a snapshot of enrolments in the MSM Manufacturing Training Package please refer to Appendix D.
Training Delivery
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As illustrated in Table 1 below, delivery by private RTOs accounts for the majority of enrolments, although this has
declined slightly from 72% in 2015 to about 64% in 2017.
Table 1 – Proportion of program enrolments by provider type
Provider type
AF Government
funded
Government
funded
Total VET
enrolments
enrolments 2016 enrolments 2017 2016
Total VET
enrolments
2017
Percentage
provider type for
2017
TAFE 639 799 1,122 1,206 13%
Private training provider 3,475 4,239 5,352 5,750 64%
University 33 5 49 12 0%
Enterprise provider 155 151 246 292 3%
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School 118 94 1,666 1,660 19%
Community education - 29 - 29 0%
provider
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MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202313
Table 2 indicates the number of RTOs with MSM Manufacturing Training Package qualifications on scope. This data is
current at August 2018, per the listing on the National Register of VET available at www.training.gov.au.
The Certificate III in Manufactured Mineral Products is not included on this list as it has only recently been endorsed.
However, four RTOs had the previous qualification on scope as of the same date.
Similarly, the Certificate III in Fenestration is not included as it is a new qualification that has not yet been added to the
scope of any RTO.
Table 2 – Number of RTOs by nationally recognised qualifications on scope
Qualification name No. of RTOs on scope
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Certificate I in Process Manufacturing 4
Certificate I in Manufacturing (Pathways) 38
Certificate II in Process Manufacturing 15
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Certificate II in Manufacturing Technology
Certificate II in Recreational Vehicle Manufacturing
Certificate III in Process Manufacturing
17
1
42
Certificate III in Surface Preparation and Coating Application 6
Certificate III in Recreational Vehicle Service and Repair 6
Certificate III in Recreational Vehicle Manufacturing 7
Certificate IV in Process Manufacturing 10
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Source: https://training.gov.au. RTOs approved to deliver this qualification. Accessed August 2018.
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MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202314
Qualifications Available
The following qualifications and skill sets are contained in the MSM Manufacturing Training Package.15
Process Manufacturing
• Certificate I in Process Manufacturing
• Certificate II in Process Manufacturing
• Certificate III in Process Manufacturing
• Certificate IV in Process Manufacturing.
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Related Qualifications
• Diploma of Production Management.
VET Delivered to Secondary Students Qualifications
•
•
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Certificate I in Manufacturing (Pathways)
Certificate II in Manufacturing Technology.
Recreational Vehicles
• Certificate II in Recreational Vehicle Manufacturing
• Certificate II in Recreational Vehicle Service and Repair
• Certificate III in Recreational Vehicle and Accessories Retailing
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• Certificate III in Recreational Vehicle Manufacturing
• Certificate III in Recreational Vehicle Service and Repair
• Certificate IV in Recreational Vehicle and Accessories Retailing
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• Certificate IV in Recreational Vehicles
• Diploma of Recreational Vehicles.
15 Source: https://training.gov.au/Search, accessed 13/08/18.
MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202315
Surface Preparation and Coating
• Certificate III in Surface Preparation and Coating Application.
Manufactured Mineral Products
• Certificate III in Manufactured Mineral Products.
Fenestration
As highlighted earlier in the report, a new qualification, has been added to the MSM Manufacturing Training Package.
• Certificate III in Fenestration.
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Industrial Services Skill Sets
• Use high pressure water jetting equipment
• Operate a high pressure water jetting system
•
•
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Operate a drain cleaning system
Operate a vacuum loading system.
Trade Measurement Skill Sets
• Trade Measurement Inspection
• Trade Measurement Verification (Complex Measuring Instrument)
• Trade Measurement Verification (Limited Weighing Instrument)
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• Trade Measurement Verification (Liquid Measuring Instrument Using Volume Measures)
• Trade Measurement Verification (Simple Measuring Instrument)
• Trade Measurement Verification (Simple Measure).
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Other Skill Sets
• Licence to operate a standard boiler
• Licence to operate an advanced boiler
• Leading Hand/Supervisor
• Confined space work team.
MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202316
Qualification Uptake
As illustrated in Figure 2 below, enrolments in MSM Manufacturing Training Package qualifications have been declining
since 2014, although there has been a slight increase (5%) in 2017. Declines have been most evident in privately funded
enrolments (almost 150% between 2014 and 2017).
Of the 8,945 enrolments in 2017, 59% were government funded.
Figure 2 – Total program enrolments in MSM Manufacturing qualifications, 2014–2017
18,000
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16,000
14,000
12,000
10,000
8,000
6,000
4,000
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2,000
0
2014 2015 2016 2017
Government funded Total VET activity
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The majority of enrolments are in the Certificate III and Certificate IV in Process Manufacturing (see Figure 3 on the next
page). Together they accounted for 67% of all enrolments in 2017, with the two school related qualifications accounting
for a further 27% of enrolments.
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MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202317
Figure 3 – Qualification enrolments, 2014–2017 – top six MSM Manufacturing
qualifications by TVA in 2017 individually identified
Certificate III in Surface Preparation and Coating
Application
Certificate II in Process Manufacturing
Certificate II in Manufacturing Technology
Certificate I in Manufacturing (Pathways)
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Certificate IV in Process Manufacturing
Certificate III in Process Manufacturing
0 1,000 2,000 3,000 4,000 5,000
AF 2014 2015 2016 2017
The Certificate III in Process Manufacturing accounted for 54% of all completions across MSM Manufacturing Training
Package qualifications in 2017, with the other three most popular qualifications accounting for a further 36% of
completions. These proportions of completions are roughly aligned with enrolment patterns.
Whilst enrolments in the Certificate III in Surface Preparation and Coating Application are relatively small, the 131
enrolments in this qualification in 2017 represent a 39% increase on 2016 figures.
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In the Recreational Vehicles sector, the Certificate III in Recreational Vehicle Manufacturing and Certificate III in
Recreational Vehicle Service and Repair continue to attract relatively small numbers of enrolments (72 and 38
enrolments respectively in 2017). The Certificate II in Recreational Vehicle Manufacturing attracted 13 enrolments in
2017; the first ever enrolments for this qualification.
The remaining Recreational Vehicles qualifications and the Diploma of Production Management did not have any
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enrolments in 2017.
The Certificate III in Manufactured Mineral Products that has been moved into the MSM Manufacturing Training
Package attracted 13 enrolments in 2017, which is a decrease of 75% since 2014.
The most significant declines in enrolments were in the Certificate I and Certificate II in Process Manufacturing.
However, they still attracted 32 and 216 enrolments respectively in 2017. In addition, consultations with a large
manufacturer indicated that the Certificate I in Process Manufacturing is actively used as an entry-level qualification for
new employees.
MSM Manufacturing Training Package
IRC Skills Forecast and Proposed Schedule of Work 2019–202318
Challenges and Opportunities
For Industry and Employers
Technology
The most significant challenges and opportunities across the sectors covered by the MSM Manufacturing Training
Package relate to changing technology and increasing levels of automation. These will impact upon the sectors in a
number of different ways.
Research is showing that, although technology is unlikely to eliminate many job roles entirely, almost all jobs will be
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affected in some way, with tasks involving predictable physical work, data processing and data collection the most
susceptible to being automated.16 It also suggests that by 2022, at least 54% of all employees will require significant
reskilling and upskilling, while all workers will need a ‘mindset of agile learning as they shift from the routines and limits
of today’s jobs to new, previously unimagined futures’.17
Consultations indicate that the nature of work roles across different parts of the manufacturing sectors is already
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changing. For example, advanced manufacturing methods are starting to be used in the recreational vehicle sector
with the importation of labour from the departing automotive industry, requiring new skills in technologies such as
robotics and 3D printing. In process manufacturing, increasing levels of automation and use of advanced manufacturing
processes are also a feature.
In the Industry 4.0 conference conducted by IBSA Manufacturing in 2018, 88% of delegates described the challenge of
technology as either significant (48%) or very significant (40%) and almost two-thirds (62%) identified skills or training
as forming part of that challenge. When asked whether the VET sector was keeping up with changing technology, 72% of
delegates said ‘no’, adding comments such as:
• ‘Often VET prepares workers for current work roles with little capacity to adapt to changes, especially when they
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are rapidly occurring.’
• ‘There is not much awareness of technological impacts in the development of training packages.’18
Work conducted by CSIRO on advanced manufacturing identified that sustained growth in the sector will require
investment and translation of enabling science and technology, including: sensors and data analytics, advanced
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materials, smart robotics and automation, 3D printing, and augmented, mixed and virtual reality, which in turn has
implications for underpinning digital literacy and Science, Technology, Engineering and Mathematics (STEM) skills
across the workforce.19
16 McKinsey and Company (2016) Where machines could replace humans – and where they can’t (yet), McKinsey Quarterly, July 2016.
17 Centre for the New Economy and Society (2018) The Future of Jobs Report, World Economic Forum. Pix.
18 https://ibsa.org.au/industry-4-0-unpacking-the-skills-challenges-conference/.
19 CSIRO (2016) Advanced Manufacturing; A Roadmap for unlocking future growth opportunities for Australia.
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IRC Skills Forecast and Proposed Schedule of Work 2019–202319
A recent Australian Industry Group survey of its members found that employers are experiencing difficulties recruiting
employees with STEM skills, particularly technicians, trade workers and professionals. They also identified that the
most significant capability improvements required by managers are in the areas of technology/digitalisation; therefore,
employers have prioritised digital technology training for managers. 20
Sustainability
Rising awareness amongst consumers is driving demand for more environmentally sustainable products in the
recreational vehicle sector. In addition to technology that increases sustainability, such as solar power and improved
battery storage, consultations indicate a growing demand for the use of composites and other lightweight materials in
the manufacture of recreational vehicles to reduce their weight and fuel consumption.
Consultations also identified that lean manufacturing processes are increasingly being used in the manufacture of
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recreational vehicles, and that there is a need for a greater focus on lean manufacturing in the process manufacturing
qualification to meet workplace demands.
Sustainable manufacturing, both in terms of business models and processes and the manufacture of sustainable
products, was identified by CSIRO as one of the key opportunities for Australia’s manufacturing sector.21
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Sustainability in manufacturing is also an important focus of Queensland’s recently released 10-Year Roadmap and
Action Plan, with support to be provided for local manufacturers to ‘address input costs such as energy and electricity,
reduce waste and to meet the increasing customer demand for products that are both affordable and have a light
environmental footprint’.22
Business and Economics
Changes in the manufacturing sector also include changes in business models and practices, with research suggesting
that to remain competitive, manufacturers also need to take advantage of opportunities in the adoption of:
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• Customised high-margin solutions – this includes design services, and the manufacture of superior components
and novel products.
• Selling services – this includes maintenance and repair services, workflow management services and health and
biosecurity services.
• Global value chains – which have been shown to provide businesses with exposure to new technologies, processes
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and skills.23
20 Australian Industry Group (2018) Skilling: A National Imperative.
21 CSIRO (2016) Advanced Manufacturing; A Roadmap for unlocking future growth opportunities for Australia.
22 Advance Queensland (2018) Queensland Advanced Manufacturing 10-Year Roadmap and Action Plan, Department of State Development,
Manufacturing, Infrastructure and Planning, p 30.
23 CSIRO (2016) Advanced Manufacturing; A Roadmap for unlocking future growth opportunities for Australia.
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IRC Skills Forecast and Proposed Schedule of Work 2019–202320
In the recreational vehicle sector, consultations identified several factors impacting the economic viability and business
practices of businesses in the sector including:
• Cheap imports are becoming a major competitor to the local market, requiring streamlining of production costs
and implementation of cost controls.
• Increasing numbers of customers in the younger demographics and amongst young families are driving price point
of products lower.
• Lack of understanding of the repair process and costs involved by the insurance industry (which is one of the
biggest customers of the repair side of the recreational vehicle sector) is impacting on the ability of workshops to
retain and maintain a highly skilled workforce.
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Political and Institutional
Technology is moving faster than the pace of regulation and standards, creating a significant challenge in ensuring
product quality across the sector.
The upcoming RVSA legislative reform is the largest change to federal vehicle legislation in the past three decades. The
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Bill, which was passed at the end of 2018, provides an administrative framework to strengthen compliance enforcement
across the recreational vehicle sector, making a training culture even more important. Two of the standards, AS5601:2
and AS3001, are likely to impact upon recreational vehicle manufacturing and design processes.
A review of the legislation that underpins Australia’s measurement standards is also currently underway to bring the
standards up-to-date with changed technology, as well as to identify aspects of Australia’s measurement framework
that can be modernised, streamlined or simplified. Options for reform are to be presented to the government for
consideration in 2020; therefore, legislative changes are unlikely to occur for several years.
Supply-side Challenges and Opportunities
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Impact of technological disruption
A recent report by NCVER, which analysed the potential impact on technological disruption and the Fourth Industrial
Revolution on workplaces and the implications for the VET system, suggested that:
• training needs to equip the workforce with the knowledge and skills to use new technologies as well as prepare
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them for an expanded scope of tasks within job roles
• generic/soft skills will play an essential role in preparing workers to be flexible and cope with the rate and scope
of change
• in some firms (especially in advanced manufacturing firms), specialist technology skills will be needed
• there is a need for collaboration between employers and the VET sector to support lifelong learning within
the workforce.24
24 Seet, P., Jones, J., Spoer, J. and Hordacre, A. (2018) The Fourth Industrial Revolution: the implications of technological disruption for Australian VET,
NCVER, Adelaide. p 9–10.
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The research also identified a shortage of local training providers with the capacity to deliver training in the skills
needed to utilise new technologies.25
Consultations in the recreational vehicle sector also identified that the skills to operate, maintain and service the more
technologically advanced equipment that is starting to be used in the manufacture of recreational vehicles (robotics, 3D
printing, etc.) are scarce.
Labour and skill shortages
Consumers are increasingly purchasing and fitting accessories to recreational vehicles. However, there are currently no
formal training options for vehicle accessory fitting. At the same time a lack of awareness of career options in vehicle
accessories fitting amongst school leavers, parents, school career councillors and other influencers is also contributing
to labour and skill shortages in this area.
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A shortage of training providers delivering sector-specific training is also impacting on the ability of the sector to
access the skills it needs.
Micro-credentials and modular learning
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Micro-credentials (i.e. small chunks of learning) were also identified as a potential way of being more responsive to
rapidly changing training and skill development needs.26
The idea of modular learning and greater choice over the content of training was also raised in recent research by the
Advanced Manufacturing Growth Centre, which reported that ‘Employers seek greater involvement in Australia’s VET
system. As one manufacturer told AMGC: ‘We want to tailor the training schemes for us; to cherry-pick what we want’.
Another said: ‘The education system doesn’t need to be reorganised around Industry 4.0. What needs to take place is the
development of the little modules so that a manufacturer can come along and say I want that piece.’27
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25 Seet, P., Jones, J., Spoer, J. and Hordacre, A. (2018) The Fourth Industrial Revolution: the implications of technological disruption for Australian VET,
NCVER, Adelaide. p 36.
26 Seet, P., Jones, J., Spoer, J. and Hordacre, A. (2018) The Fourth Industrial Revolution: the implications of technological disruption for Australian VET,
NCVER, Adelaide, p 46.
27 Advanced Manufacturing Growth Centre (2018), Industry 4.0: An Opportunity for Every Australian Manufacturer; Submission to the Department of
Industry, Innovation and Science.
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For Learners and Training Package Development
Consultations with industry and RTO representatives identified some specific opportunities for training package
development work related to particular qualifications and skill sets from the MSM Manufacturing Training Package.
Process Manufacturing
A survey and series of in-depth interviews was conducted with RTOs delivering one or more of the MSM process
manufacturing qualifications. Feedback from the 30 survey responses and 10 in-depth interviews identified the following.
• RTOs who are currently delivering one or more of the Certificate I, II, III or IV in Process Manufacturing are very
happy overall with their ability to meet employer and learner needs through these qualifications.
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• The flexibility to customise the qualifications to meet employer needs was noted as being of particular value.
• At the same time, several RTOs who have these qualifications on scope are no longer delivering them due to a lack
of demand and challenges in finding skilled trainers to deliver them.
• These qualifications are delivered predominantly to existing employees, across a wide range of industries,
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including manufacturing, mining and resources, chemicals, warehouse/logistics, food and beverage, commercial
laundries, recycling facilities, water and sewage treatment, hospitals, engineering works, furniture assembly,
construction equipment manufacturing, canvas/textile industry, steel products, importing, packaging, plastics
industries and concrete supplies.
• A stronger focus on industry trends such as lean manufacturing (e.g. by incorporating electives from competitive
systems and practices qualifications) and a possible reduction in the length of the Certificate III and IV
qualifications may make this group of qualifications more attractive to employers and learners into the future.
• The full Process Manufacturing RTO Survey is provided at Appendix E.
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High Pressure Water Jetting, Drain Cleaning and Vacuuming
Industry consultations identified that the current units of competency and skill sets are mostly ‘hitting the mark’ in
terms of industry needs. However, the following issues could be addressed through training package development work
over the next few years:
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• The need for greater clarity about the purpose and differences between the skill sets ‘Use high pressure water
jetting system’ and ‘Operate a high pressure water jetting system’.
• Clarification of the scope of the high pressure water jetting units of competency is needed in relation to waterjet
cutting, which is used in some MEM Manufacturing and Engineering units of competency.
• Ambiguity in the wording of some assessment criteria is resulting in different interpretations of assessment
requirements by RTOs.
• There is potential for the development of a qualification at the Certificate III or IV level.
• Formal training that aligns with a job role emerging in the telecommunications industry that requires the digging
of holes using high pressure water jetting and vacuuming equipment.
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IRC Skills Forecast and Proposed Schedule of Work 2019–202323
Trade Measurement
Industry and RTO consultations identified the following issues relating to the trade measurement units and skill sets
contained in the MSM Manufacturing Training Package:
• A review of the legislation underpinning measurement standards (described in the Challenges and Opportunities
section) is currently underway.
• The assessment requirements of the current units, particularly those related to verification, do not align well with
job roles and are in need of review. It appears that much of the content of the ‘inspection’ units have been copied
across to the ‘verification’ units and is not always relevant.
• It is unclear as to whether there is any connection between these trade measurement verification competencies
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and other calibration units of competency in the MSL Laboratory Operations Training Package and MEM
Manufacturing and Engineering Training Package.
Cross-industry Challenges and Opportunities
The challenges and opportunities facing the manufacturing industry sector in relation to changing technology and
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increasing automation are likely to be widespread across all sectors.
Opportunities may also exist through existing cross sector projects (Teamwork and Communication; Consumer
Engagement Through Online and Social Media; Supply Chain Skills). The IRC will engage with cross sector projects to
provide input on the skill needs and experiences of the manufacturing industry. See the Cross Sector Projects section
for more details.
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Employment and Skills Outlook
Employment Outlook
Table 3 details the numbers of employees and expected growth in employment over the next five years for the main
occupations covered by the MSM Manufacturing Training Package.
A few important points need to be made in relation to this data:
• Process manufacturing qualifications are used across a wide range of industry sectors and are unable to be fully
captured in the occupational data below.
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• Recreational vehicle manufacturers, retailers and repairers are a specialised subset of the Vehicle Body Builders
and Trimmers, Motor Vehicle and Vehicle Parts Salespersons and Motor Mechanics occupations listed below.
• Metal Finishing and Coating is only a small subset of Sheetmetal Trades Workers, with Census data showing a
total of 317 people employed in this sub-sector in 2016.
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A list of the qualifications relating to each of these occupations can be found in Appendix B.
As has been noted earlier, the IRC has cautioned against too great a reliance solely on ANZSCO classified data because
of the challenges outlined above.
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IRC Skills Forecast and Proposed Schedule of Work 2019–202325
Table 3 – Number of employees and expected growth in employment over the next five
years for the main occupations covered by the MSM Training Package.
ANZSCO Occupation Unit Group Estimated Number of Employees Projected % Growth
(rounded to nearest 100) number of over five
employees years
2016 2017 2018 2023 2018–2023
1335 Production Managers 54,300 61,800 53,300 56,300 5.6%
3129 Other Building and Engineering 27,200 24,700 21,100 21,700 2.9%
Technicians
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3212 Motor Mechanics 98,200 92,500 103,700 101,800 -1.9%
3222 Sheetmetal Trades Workers 6,000 6,500 8,100 8,500 4.7%
3242 Vehicle Body Builders and 5,900 6,100 4,000 4,000 0.6%
Trimmers
3990
3999
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Miscellaneous Technicians and
Trades Workers nfd
Other Miscellaneous Technicians
0
16,200
100
16,400
100
17,900
100
21,100
0.3%
17.9%
and Trades Workers
6213 Motor Vehicle and Vehicle Parts 32,800 37,700 34,700 35,900 3.5%
Salespersons
7111 Clay, Concrete, Glass and Stone 3,200 2,900 4,300 5,000 15.2%
Processing Machine Operators
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7119 Other Machine Operators 11,300 11,700 13,700 13,700 0.0%
8322 Product Assemblers 26,300 27,500 33,800 35,900 6.3%
8390 Miscellaneous Factory Process 0 0 100 100 0.0%
Workers nfd
8399 Other Factory Process Workers 10,300 9,500 10,600 10,400 -2.5%
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8994 Motor Vehicle Parts and 11,300 13,200 10,500 10,500 -0.4%
Accessories Fitters
8999 Other Miscellaneous Labourers 54,200 68,200 61,700 63,100 2.2%
Source: Department of Jobs and Small Business, Labour Market Information Portal.
Occupation time series data (May 2014 to May 2017) has been sourced from the ABS 6291.0.55.003 Labour Force, Australia, Detailed, Quarterly, May
2018. Figures are average of preceding 4 quarters, whereas May 2018 and projection to May 2023 figures are seasonally adjusted and trended as
sourced from LMIP.
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These historical and projected employment patterns highlight the following points:
• Whilst employment numbers for the manufactured minerals related occupation of Clay, Concrete, Glass and Stone
Processing Machine Operators are comparatively small, it is a projected growth occupation.
• Production managers are a relatively large group of employees and are projected to grow. However, there have
been low or no enrolments in the Diploma of Production Management from 2014–2017. This may indicate a need to
review the relevance of this qualification.
• The Sheetmetal Trades Worker occupation, of which Metal Coating and Finishing is a subset, is another growth area.
This is supported by census data that shows an 8% increase in employment from 2011–201628 and IBISWorld data, which
projects employment in the Metal Coating and Finishing sector to grow by about 10% over the period 2018–2023.29
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• Whilst employment for Motor Mechanics and Vehicle Body Builders and Trimmers is expected to decline, or
experience minimal growth, this does not reflect feedback from the Recreational Vehicles that indicates this is a
growing sector.
Other significant observations that can be made from ABS Census data in relation to employment in the industries
related to the MSM Manufacturing Training Package include the following.
•
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The workforce across the selected industry classes is predominantly male, comprising 82% of the workforce,
compared with 53% male in the overall Australian labour force.
Figure 4 – Gender of employees in selected industry classes versus the general labour
force, Census 2016
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Manufacturing Training Package 82% 18%
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Labour force 53% 47%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Male Female
28 ABS Census of Population and Housing 2006, 2011, 2016.
29 IBISWorld, 2017, Industry Report C2293 – Metal Coating and Finishing in Australia, Dec 2017.
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• The age profile of the selected industry classes is similar to that of the profile of the overall labour force.
Figure 5 – Age of employees in selected industry classes versus the general labour force,
Census 2016
Manufacturing Training Package 4% 23% 22% 23% 19% 10%
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Labour force AF 6% 21% 22% 22% 19% 10%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Under 20, 1% v. 2% 20–29 30–39 40–49 50–59 60 and over
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